Dec. 19 (Bloomberg) -- France said household power bills
will rise by an average 2.5 percent next year to pay for the
increased cost of generating and supplying clean energy.

The change reflects a jump in the so-called CSPE tax, which
is designed to pay for renewable and other energy subsidies,
Environment Minister Delphine Batho said today. The cost of the
subsidies will climb 21 percent, according to the regulator.

France is seeking to fund an expansion of renewable-power
output as President Francois Hollande scales back the country’s
reliance on nuclear energy. The 3-euro ($3.98) boost to the CSPE
levy is less than half the increase sought by the regulator to
allow power utility Electricite de France SA to cover its costs.

The tax will rise to 13.5 euros a megawatt-hour next year
from 10.5 euros, Batho said in a statement. The watchdog had
already said that level wouldn’t enable EDF to meet its costs of
supplying renewable energy, special power rates for low-income
households and service to rural areas. Unless it’s raised to
18.8 euros, EDF’s efforts to cover its expenses will fall short
by 2 billion euros next year, according to the regulator.

Closing that deficit will take “several years,” Batho
said. The financing of renewable power will form part France’s
policy debate on energy in the coming months, she said.

EDF’s net financial debt increased to 39.7 billion euros at
the end of June from 33.3 billion euros at the end of last year.